No urgent need to review budget, says Dr M

Prime Minister Dr Mahathir Mohamad being greeted by Istana Budaya director-general Mohamed Juhari Shaarani last night. (Bernama pic)

KUALA LUMPUR: Dr Mahathir Mohamad says there is no immediate need to recalibrate the 2019 budget despite the recent decline of world crude oil prices.

He said this was due to the fluctuating nature of oil prices.

“It depends on how much it comes down. But not immediately (recalibrate the budget) because when it comes down, it will go up again.

“We have to prepare when the price is up,” he told reporters after watching Ola Bola the Musical 2019 at Istana Budaya here with his wife, Dr Hasmah Mohamad Ali, last night.

Crude oil is currently at US$66 per barrel. Calculations for the 2019 budget were based on the crude oil price of US$70 per barrel.

On the Cabinet’s announcement that RON95 prices would be capped at RM2.08 per litre, the prime minister said the decision was made as the government was able to absorb the extra cost if the market price exceeds this.

The government announced yesterday that the retail price for RON95 petrol would be capped at RM2.08 per litre, down from the previous RM2.20.

Finance Minister Lim Guan Eng said this was in line with the Pakatan Harapan government’s commitment to help reduce the cost of living.